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How to Financially Plan For Your Kids Future

August 3, 2023 $ by Tonza Borden $ Leave a comment

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Give Your Child A Complete Financial Head Start! #financialplanning #kidsfuture #ruralmoney #rural #money #ruralareas

As a parent, there are several ways in which you can help your kids prepare for the future, and financially plan for your kids future.

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Give Your Child A Complete Financial Head Start! #financialplanning #kidsfuture #ruralmoney #rural #money #ruralareas

Below are just five steps to consider.

Open a Bank Account for Them

Most banks won’t let your child open a checking account to use themselves until they are 13.

However, you can open a custodial bank account (into which you have access) at any time.

Such an account could be ideal for contributing savings throughout their life.

This could be an account that you don’t let them know about until they are 18.

By using a savings account, you can help your savings contributions gain interest.

Such an account could help to give them a great start in life by opening up possibilities such as travel or even placing a down payment on a home.

Take Out Family Health Insurance

Once your kids are born, it’s worth adding them to your health insurance policy (or taking out a new family health insurance plan).

Some parents forget to do this and end up having to pay for any medical treatment they may require out of their own pocket.

With any luck, you won’t need to make many health insurance claims on behalf of your kids.

But just in case they do fall sick or get injured, it’s worth making sure that they’re covered.

Start a College Fund

Many of us aspire to see our kids go to college.

However, college is very expensive.

Student loans are an option, but it means your kids will immediately be burdened by huge amounts of debt.

By setting up a college fund, you can reduce the amount of money that kids need to borrow for higher education.

This is essentially a savings account into which you can contribute money until they require it to go to college.

Take the time to explore accounts to find the best interest rates.

Write a Will

Hopefully you’re not about to die any time soon.

But just in case, it may be worth setting up a will to control exactly where your funds and assets will go.

It’s worth hiring an estate lawyer when writing a will to make sure that it’s legally recognized and to make sure that you’ve considered all eventualities (such as what to do with pets or what to do if you and your partner die).

Things like power of attorney could also be worth looking into.

You’ll want to wait until your kids are responsible enough before giving them this power.